Linglong Tyre(SH:601966) Xin Lang Cai Jing·2025-11-02 08:30Core Viewpoint - The company reported its Q3 2025 earnings, showing a mixed performance with revenue growth but a significant decline in net profit [1] Financial Performance - For the first three quarters of 2025, the company achieved revenue of 18.16 billion yuan, a year-on-year increase of 13.9% [1] - The net profit attributable to shareholders was 1.17 billion yuan, down 31.8% year-on-year [1] - The adjusted net profit was 1.02 billion yuan, a decrease of 26.7% year-on-year [1] - In Q3 2025, the company reported revenue of 6.35 billion yuan, with year-on-year and quarter-on-quarter increases of 14.0% and 3.8%, respectively [1] - The net profit for Q3 was 310 million yuan, reflecting a year-on-year decline of 60.2% and a quarter-on-quarter decline of 39.1% [1] - The adjusted net profit for Q3 was 250 million yuan, down 46.3% year-on-year and 48.9% quarter-on-quarter [1] Gross Margin and Production - The gross margin for Q3 2025 was 18.0%, an increase of 2.0 percentage points quarter-on-quarter, driven by higher sales prices and lower raw material costs [2] - The average price per tire increased by 3.1% quarter-on-quarter, while the procurement costs for key raw materials decreased by 7.4% [2] - For the first three quarters of 2025, tire production reached 69.79 million units, up 6.2% year-on-year, and sales were 67.48 million units, up 10.0% year-on-year [2] - In Q3, tire production was 23.90 million units, with year-on-year and quarter-on-quarter increases of 7.0% and 4.5%, respectively [2] - Tire sales in Q3 were 23.10 million units, reflecting year-on-year and quarter-on-quarter increases of 7.8% and 0.5%, respectively [2] Global Expansion Strategy - The company announced a planned investment of 1.19 billion USD to establish a tire production project in Brazil, which includes various tire types and liquid reclaimed rubber [2] - This project marks the company's third overseas factory, following Thailand and Serbia, and represents a significant step in its "7+5" global strategy [2] Earnings Forecast and Investment Recommendation - The company is projected to achieve revenues of 25.34 billion, 28.92 billion, and 32.47 billion yuan for 2025-2027, with year-on-year growth rates of 14.9%, 14.1%, and 12.3%, respectively [3] - The net profit attributable to shareholders is expected to be 1.58 billion, 1.99 billion, and 2.87 billion yuan for the same period, with year-on-year changes of -9.6%, +25.7%, and +44.3% [3] - Based on the closing price on October 31, the corresponding PE ratios are projected to be 14, 11, and 8 times, with a "recommended" rating for the first coverage [3]